New Zealand Infrastructure Commission Reveals Lessons from Auckland’s City Rail Link Project
In an interim review released today, the New Zealand Infrastructure Commission, Te Waihanga, sheds light on the challenges faced during the construction of Auckland’s City Rail Link (CRL) project. This review serves as a reminder of the complexities involved in delivering large-scale infrastructure projects and the potential consequences when risks materialize.
With the aim of drawing valuable insights for future projects like Auckland Light Rail, the Infrastructure Commission commissioned a comprehensive review. Industry experts Graeme Joyce and Peter Spies, who have extensive experience in overseeing major infrastructure endeavors across Australasia, led the review. By examining project documents and conducting interviews with team members, they were able to gain a deep understanding of the project’s intricacies.
These multi-billion-dollar projects are intricate, disruptive, and can span over a decade of construction. It is imperative that we absorb as much knowledge as possible from this experience, especially if we want projects of this magnitude to become a significant part of our overall infrastructure investment, said Blake Lepper, GM Delivery at the Infrastructure Commission.
While the City Rail Link is expected to be a valuable asset for Auckland City, providing significant travel time savings, enhanced safety measures, and urban intensification benefits, it is important to note that its projected cost has more than doubled since the initial estimate in 2015. Furthermore, the project will require substantial additional investment to fully realize its design capacity, with billions of dollars earmarked for the Auckland rail network in the years ahead.
The review emphasizes the need to improve the business case process. It recommends reviewing future business cases whenever project expectations, scope, or costs change. The review also questions why over a billion dollars’ worth of essential upgrades, vital for reaping the project’s benefits, were not included in the initial business case. Additionally, stronger procurement planning is encouraged, given the challenges associated with collaborating with both local and international contractors who each play vital, albeit distinct, roles in project success. The review also stresses the importance of adequately informing affected communities and businesses of a project’s impacts.
Interviews conducted during the review revealed that City Rail Link Ltd is efficiently delivering the project within set timelines and to an acceptable standard. This success is attributed to the collaboration and support from all entities involved. The reviewers commended various aspects of the project, such as its property acquisition approach, which represented a significant improvement compared to previous endeavors.
The review concludes with 24 recommendations for future infrastructure projects. While the lessons drawn from this review align with international findings, it does highlight a distinct challenge faced in New Zealand: a scarcity of skilled and experienced professionals capable of managing projects of similar scale and complexity.
On the City Rail Link project, we had to continually evolve and develop workarounds for the originally agreed-upon structures. This consumed time and added pressure on delivery-focused teams. Such projects have never been completed in New Zealand before, and they represent the country’s first large-scale integrated-transport-urban development projects. To improve our capabilities in handling such projects, we need to ensure continuous knowledge transfer from one project to the next, setting up each subsequent project for success, explained Lepper.
Building the capability of major project leaders was already identified as a priority in the New Zealand Infrastructure Strategy released in 2022. The Infrastructure Commission is currently developing a program to address this need.
As New Zealand prepares for significant transport investments in the future, it is crucial to learn from the lessons and recommendations arising from the City Rail Link project. By incorporating these insights and improving upon previous experiences, the country can enhance its infrastructure investment efforts, ensuring the successful delivery of large-scale projects that benefit communities, boost economic growth, and create a more sustainable future.
